Property Knowledge Centre → How Do I Know if a Price Quote Is Realistic or Just to Win My Listing?
How Do I Know if a Price Quote Is Realistic or Just to Win My Listing?
How do I know if a price quote is realistic or just to win my listing? The best test is not whether the figure sounds attractive, but whether the agent can clearly explain the evidence, assumptions and strategy behind it.
Start by asking for the specific comparable sales supporting the price opinion. Those properties should be genuinely relevant to yours in terms of location, land size, accommodation, condition, quality, position and overall buyer appeal.
No property is an exact comparison, so the agent should also be able to explain the differences. Why is your property worth more or less than each comparable sale? What characteristics are buyers likely to pay a premium for, and where might they make an adjustment?
A higher quote is not automatically wrong. An experienced agent may have a legitimate reason for believing a property can outperform previous sales because of scarcity, presentation, current buyer demand or changes in market conditions. The important question is whether that opinion can be supported and explained.
Be cautious when the price is the main reason you are being asked to choose an agent. An optimistic figure can sometimes be used to make a proposal more appealing and win the listing, with the seller’s expectations addressed later once the campaign is underway.
This is sometimes referred to as buying the listing. The risk is not simply that the initial estimate proves too high. A campaign can lose valuable time if the property enters the market with expectations that are significantly disconnected from genuine buyer response.
You should therefore ask what happens if the market does not support the original figure. What is the process for reviewing buyer feedback? When would the agent recommend changing the strategy? How will any change in price expectations be explained, and what commitments have you made under the agency authority or marketing agreement?
It is also worth comparing the agent’s original appraisal with their proposed method of sale and marketing strategy. The price opinion, campaign and method of sale should make sense together. If an agent is forecasting an exceptional result, ask what their strategy is for creating the competition required to achieve it.
The right agent should be prepared to have an honest conversation before being appointed, not simply agree with the seller. Good advice may confirm your expectations, challenge them or explain why the market needs to be tested before a definitive conclusion can be reached.
Ultimately, choose the agent whose price opinion is supported by evidence and whose strategy, track record and reasoning give you confidence in the process, rather than simply choosing the highest number presented at the appraisal.
Related Questions
Why Do Property Valuations Differ So Much Between Agencies?
What Is the Risk in an Agent Underquoting or Overquoting to Win My Listing?
How Do Recent Comparable Sales Affect My Property’s Value?
For an evidence-based assessment of your property’s likely market position, including relevant comparable sales, current buyer demand and the strategy most appropriate for your property, request a professional property appraisal with Clements International.